Thursday, May 23, 2024
NewsCadillac Dealers Down by 40% in the US Since Many didn’t Want...

Cadillac Dealers Down by 40% in the US Since Many didn’t Want to Sell EVs

Cadillac will have to make due with 360 dealerships less than 3 years ago

  • Cadillac lost about 360 dealerships in the US since 2018 because their owners didn’t want to invest into EVs

  • General Motors bought out the dealers that didn’t make the transition

  • Its 560 dealerships are still the most of any luxury car brand

Cadillac lost about 40 % of its American dealerships since 2018 because their owners didn’t want to invest into electric cars.

General Motors required all of its Cadillac dealerships to invest between $200,000 to $500,000 in preparation for the arrival of the first electric vehicles from the luxury brand.

Since many of the 920 establishments that sold the Cadillac brand in the United States in 2018 were unwilling to make that commitment, General Motors offered to buy back the franchise from their owners, a proposition that around 360 people accepted, since GM estimates it will end 2021 with 560 Cadillac dealers. This process cost the automaker $274 million in 2020 and 2021.

Nevertheless, even with this reduction, Cadillac is still the luxury brand with the most dealerships in the United States.

The brand has plans to only sell electric vehicles by 2030 and its first EV, the Lyriq SUV, is reportedly 80% done with its validation process that involves tests in cold and hot weather, real world exercises and virtual simulations. It is supposed to go on sale in the summer of 2022.

Other electric Cadillacs that have been announced are the Celestiq sedan and the electric version of the Escalade large SUV, that could be called Escalade IQL.

Cadillac is not the only brand that reduced its number of dealers recently, with Porsche moving towards a boutique model that focusses more on the experience than on selling cars and many brands moved their purchasing process online due to the pandemic, which provides a new way to buy cars.


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